1st October 2010
Poor weather certainly played a role in the global food price spike in 2008, for instance, as did the price of oil. But Simon Webber, global and international equities fund manager at Schroders, is clear that rapid growth in biofuel production was also partly responsible.
In the US, for example, corn based ethanol redirected considerable amounts of land from food supply, significantly contributing to shortfalls during that year.
And this year there has been a sharp increase in food prices following drought in Eastern Europe, Russia, Australia, wildfires in Central Russia, floods in a number of countries including Pakistan, Nigeria and India.